Starbucks Corporation Reports Fourth Quarter and Full Fiscal Year 2024 Financial Results
Starbucks Corporation (NASDAQ: SBUX) has announced its financial results for the fourth quarter and full fiscal year ending September 29, 2024.
Key Financial Metrics:
| Metric | Q4 2024 | Q4 2023 | YoY Change | Consensus Estimate | Q3 2024 | QoQ Change |
|---|---|---|---|---|---|---|
| Total Revenue (Billion $) | 9.1 | 9.37 | -3% | 8.11 | 9.37 | -2.9% |
| GAAP EPS ($) | 0.80 | 1.06 | -24.5% | 0.98 | 1.06 | -24.5% |
| Non-GAAP EPS ($) | 0.80 | 1.06 | -24.5% | 1.06 | -24.5% |
Starbucks reported a decline in both revenue and earnings per share compared to the previous year, missing consensus estimates. The company faced challenges in North America and China, with a notable decline in U.S. comparable store sales and intensified competition in China.
Revenue Performance by Segment:
| Segment | Q4 2024 Revenue (Billion $) | Previous Guidance | YoY Change |
|---|---|---|---|
| North America | 5.5 | Not Provided | -6% |
| International | 3.6 | Not Provided | -14% |
The North American segment saw a 6% decline in comparable store sales, while the International segment, particularly China, experienced a 14% decline due to competitive pressures and a soft macro environment.
Operational Data:
No additional operational data was provided in the report.
Comments from Company Officers:
Rachel Ruggeri, Chief Financial Officer, acknowledged the challenges faced in changing customer behavior despite increased investments. Brian Niccol, Chairman and CEO, emphasized the need for a strategic reset with the 'Back to Starbucks' plan to focus on core strengths and improve customer experience.
Dividends and Share Repurchase Program:
Starbucks announced an increase in its quarterly cash dividend from $0.57 to $0.61 per share, reflecting confidence in long-term growth.
Forward Guidance:
The company has suspended guidance for the full fiscal year 2025 to reassess its business strategy and stabilize operations.
Stock Price Movement:
Following the earnings release, Starbucks' stock experienced a slight increase of approximately 0.09%, indicating a cautious market response to the company's strategic plans and financial performance.
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